The spring real estate market, like the season in many parts of the United States, is off to an early and hot start.
According to David Bellamy, chief financial officer of Alain Pinel Realtors, the bifurcated real estate market of 2016 is continuing at a steady pace as we head into the spring market.
“The entry-level, first-time home buyers’ market will continue to be competitive due to tight inventory and a slight uptick in mortgage rates,” said Bellamy of the 2017 spring market. “We’ll also continue to see buyers and sellers in the luxury market taking their time with purchase and sale decisions as they wait for the most opportune moment.”
Based on his analysis of the first two months of 2017, and despite heavy rains in the region dampening only the enthusiasm of prospective buyers to venture out to tour homes, Bellamy said all indications point to a strong spring market fueled by steady demand, limited inventory and modest increases in home prices. That was the case in communities like Atherton and Menlo Park at the end of last year, where the number of sales decreased modestly but home prices rose.
Rising prices in San Francisco, said Bellamy, will continue an eastward push as buyers priced out of that market continue to seek value and commutability in emerging hotspots such as Oakland, Alameda and Walnut Creek. Bellamy also doesn’t see a decrease in Bay Area home prices anytime soon as the tech industry continues its substantial growth.
“The tech industry remains a primary driver, and there is a lot of individual wealth in the region waiting to deploy, so this growth trend will continue for the foreseeable future,” said Bellamy.